ACCA AA · Chapter 9 · Question 4 of 10
During an inventory count, the auditor selects items on the warehouse floor and traces them to the inventory records. Which assertion does this procedure primarily test?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Completeness
Explanation
Starting with the physical items and tracing them to the records checks that all inventory held has been recorded, which is completeness. Testing from records to the floor would test existence. Occurrence applies to transactions rather than to balances.
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